BoE Chief Economist Huw Pill told CNBC today that “we face risks on both sides of the economic outlook.” Inflation is going up to 10% because of energy and international goods prices. At the same time, there was a risk of recession.
“It’s a tricky balance to seek in current difficult circumstances. And the arguments around where rates should be set in order to achieve that balance are quite finely balanced in themselves,” Pill added.
Asked about what would cause the BOE to pause tightening, Pill said MPC would want to see more evidence inflation expectations and wage and price setting and momentum in economy more consistent with target. He added, “if we don’t see that we will need to act further.”
